PCJ260Y1 Lecture Notes - Lecture 12: Security Dilemma, Rational Agent, Game Theory
14 Apr 2018
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Involvement / contemplating role of others (interests, preferences, incentives, choices) Constant back / forth of analyzing the other and determine what they are going to do. Game theory is the leading model for the rational analysis of conflict. 2 prisoners who can get less years in prison if both do not confess together. D is doubly-dominant as a rational choice, but both players lose as a result. Pursuit of individual rationality leads to sub-optimal results (both defect. D (reward, r) (sucker"s payoff, temptation) (t, s) (punishment, p) Additional constraint 2r > t + s for iterative versions. Identify options (2x2 say what c and d are) Describe strategic dilemma that emerges given the payoff structure. Highlights incentives of actors to defect and structural obstacles to cooperation. Importance of good strategy for overcoming such obstacles. Grasping the structural dilemma sets the stage for overcoming obstacles to cooperation. Look at what your opponent has done - retaliate.
